BILL ANALYSIS AB 586 Page 1 ASSEMBLY THIRD READING AB 586 (Huber) As Amended May 7, 2009 Majority vote INSURANCE 7-2 APPROPRIATIONS 12-5 ------------------------------------------------------------------- |Ayes:|Coto, Charles Calderon, |Ayes:|De Leon, Ammiano, Charles | | |Carter, Feuer, Hayashi, | |Calderon, Davis, Fuentes, | | |Hill, Torres | |Hall, John A. Perez, Price, | | | | |Skinner, Solorio, | | | | |Torlakson, Krekorian | | | | | | |-----+--------------------------+-----+----------------------------| |Nays:|Blakeslee, Niello |Nays:|Nielsen, Duvall, Harkey, | | | | |Miller, | | | | |Audra Strickland | | | | | | ------------------------------------------------------------------- SUMMARY : Provides that any peace officer defined in specified Penal Code provisions shall be entitled to the presumptions that certain conditions or illnesses are job related, including adding officers employed by the University of California (UC) and the California State University System (CSU) to the peace officers entitled to this benefit. Specifically, this bill : 1)Provides that existing presumptions that certain conditions arose during the course employment that are applicable to most fire and peace officer employees of the state and local government apply to any peace officer defined by Penal Code Sections 830.1 through 830.38. Peace officers who are employees of the UC and CSU systems would benefit from this provision. 2)Provides that the existing presumptions that would be extended to these peace officers involve cancer, hernia, pneumonia, heart trouble, tuberculosis, blood-borne infectious diseases, meningitis, and methicillin-resistant Staphylococus aureus skin infection (MRSA). 3)Subjects these new recipients of the benefit of the presumptions to the same conditions as existing presumption recipients. AB 586 Page 2 EXISTING LAW: 1)Provides that most firefighters and peace officers employed in state and local governments are afforded the benefits of the presumptions discussed above, subject to the same conditions and periods of time discussed below. 2)Provides that each of these presumptions may be rebutted by the employer. 3)Provides that each of these presumptions, except MRSA, continues to apply after the employee leaves employment for a period of three months for every year of service, but in no event more than five years after separation. 4)Provides that the MRSA presumption applies for a period of 90 days after separation. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Cumulative costs of millions of General Fund (GF) dollars, combined, to several dozen CSU, UC, and UC medical center campuses to the extent this bill increases future workers' compensation costs for the payment of full hospital, surgical, medical treatment, disability indemnity, and death benefits for numerous presumptions regarding cardiovascular, cancer, and blood-borne disease. Annual costs will depend on the health status of professions gaining access to these presumptions. Annual GF costs may be in the range of $100,000 to $200,000. 2)Most public agencies are self-insured for workers' compensation claims, rather than paid through premiums. Payments are treated in a pay as you go manner. Therefore, any increase in costs has a direct impact on public funds. COMMENTS : 1)According to the author, the UC and CSU peace officers perform the same law enforcement functions as the peace officers who already receive the benefit of these presumptions. They face the same hazards, including work in hospitals and scientific research laboratories that present risks similar to other AB 586 Page 3 police agencies. 2)The sponsor, Police Officers Research Association of California (PORAC), notes that the Penal Code classifies peace officers into several groups in the Section 830.1 through 830.38 series. The current law grants peace officers the benefit of the presumptions of compensability based upon who employs them. A problem arises when a new agency employs a peace officer, or a new authority is granted by the Penal Code for officers to be granted peace officer status based on existing classes of officer - the new peace officer categories are not automatically included in the presumption statute. This bill is designed to ensure that UC and CSU officers obtain the same benefits as similar peace officers, but also to structure the Labor Code so that it is the type of officer and not the name of the employer that determines whether the presumption applies. Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086 FN: 0001156